A granular cell tumor is a rare benign tumor of neuroectodermal origin. It is derived from Schwann cells of the peripheral nerve. Granular cell tumors can originate anywhere in the body and about 5 to 15% of all granular cell tumors originate from the breast. Out of which 1 to 2% can show malignant change. Here we report a case of a 53-year-old female who came with complaints of swelling in the right nipple for 1 month associated with pain in the swelling. On examination 1X1.5cm lump in the right retro areolar region was present. The mammogram showed BI-RADS category 4(suspicious for malignancy). An excision biopsy was done for tissue diagnosis. Upon histopathological examination and the immunohistochemical study confirmed the diagnosis of a granular cell tumor. The existence of granular cell tumors in the breast is uncommon and it can mimic carcinoma clinically and radiologically.